Affluent Likely to Do $350 Billion in IRA Rollovers

Within the next year, the affluent are the most likely to roll over $350 billion in assets into individual retirement accounts.

Cogent Research revealed that discovery in its “Investors in Action” report. The data showed that of the 25% of affluent Americans who have assets sitting in former employer’s retirement plans, nearly half (42%) said they are likely to roll over the assets into an IRA sometime within the next year.

That group has approximately $350 billion in assets ready to shift.

Cogent defines the affluent as those with $100,000 or more in investable assets, excluding real estate. The firm’s report surveyed more than 4,000 investors.

On average, 45% of affluent investors said they were satisfied with the provider their employer has chosen to run their retirement plan.

Forty-three percent said they were only somewhat satisfied and about one in 10 (12%) expressed dissatisfaction. Satisfaction levels were lowest among Gen X investors (40% on average), with baby boomers being only slightly more satisfied (48%).

“Keeping plan participants happy can have a multiplier effect,” said David Feltman, managing director of Cogent Research. “Satisfied plan participants are three times more likely to roll dollars into an IRA with their current 401(k) or 403(b) provider than are those that are not happy.”